The cryptocurrency space crashed once more last month, which was referred to as a ‘healthy correction’, but it has now made a major recovery. Bitcoin, Ethereum, and a horde of Defi tokens have all gained massively in regard to value and the market capitalization of the crypto space is now past $1.73 billion. Considering the total market capitalization of the cryptocurrency market, it now appears to have overtaken the Gross Domestic Product (GDP) of Canada. According to the latest reports issued by the International Monetary Fund (IMF), Canada is the 9th largest economy in the world and it has a total GDP of around $1.6 million.
This means that the crypto market was able to surpass the country’s GDP by $100 billion and some change. Since the beginning of this year, Bitcoin has been climbing rather rapidly, even though it has had to deal with ‘healthy’ corrections that ended up removing more than a quarter of the crypto’s value every time. If you crunch the numbers, the leading cryptocurrency has increased in value by more than 90% in the last 10 weeks alone. Currently, Bitcoin is heading towards the $60,000 mark and its market capitalization has already exceeded $1 trillion.
Consequently, the pioneer cryptocurrency appears to be carrying the rest of the market on its back. Furthermore, the market capitalization of Bitcoin is also higher than that of the South Korean Won. Now, it appears that Bitcoin is targeting the market capitalization of Alphabet Inc. The asset seems to be becoming more valuable than any other single firm, slowly, but surely. Some time ago, the world’s first cryptocurrency had managed to achieve this goal, but it had suffered from a crash then. It didn’t take long for it to get back on its feet, though. The same can be said for Berkshire Hathaway, Tesla, and Tencent.
Moreover, Bitcoin’s total market capitalization has also managed to surpass Mexico’s GDP. There has been a massive acceleration in the crypto space, primarily due to an increase in institutional demand. Major cryptocurrencies, with the exception of ETH and BTC, have experienced a spectacular increase in value due to this. Coins like Polkadot, Binance Coin, and Cardano all saw a significant increase in their prices as a result. Even the decentralized finance (DeFi) market also experienced a spectacular boom, with Chainlink, Aave, Compound and Uniswap all enjoying gains of more than 200% since the year began.
As the DeFi space is growing at such a spectacular rate, along with the blockchain space, companies like BlockFi that are part of it have also experienced a secular rise in business. For instance, a look at BlockFi indicates that the company has managed to raise a total of $350 million in a Series D funding round, which has given it a total valuation of $3 billion. Earlier this month, another blockchain startup by the name of Sonare has managed to raise a total of $50 million via a Series A funding round.